TMI Blog2018 (12) TMI 1601X X X X Extracts X X X X X X X X Extracts X X X X ..... shed. Though the rate of tax has been reduced from 28% to 18% w.e.f. 14.11.2017 the Kerala Screening Committee has failed to produce any invoice and has not examined any documents to establish that the benefit of tax reduction has not been passed on by the Respondent to the recipient hence DGAP has rightly observed that no supporting documents or invoices of the product ‘Mirror Series Tiles’ for the period post 15.11.2017 have been either examined or presented before the Standing Committee. Hence the allegation that the benefit of rate reduction has not been passed on is not sustained. Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 either on implementation of the GST w.e.f. 01.07.2017 or w.e.f. 14.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of its meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017. 3. The DGAP vide his report dated 28.09.2018 has stated that after scrutiny of the two invoices issued by the Respondent, it was observed that in the pre-GST era, the applicable tax on the product Mirror Series Tiles was CST @ 2% and Central Excise Duty @ 12.5% on 55% of the MRP. On implementation of the GST w.e.f. 01.07.2017, the GST rate on the said product was fixed at 28% which was reduced to 18% w.e.f 15.11.2017. The DGAP has further observed that no sale invoice issued by the Respondent after the reduction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Central Excise Duty C 12.5% - Central Excise Duty (in Rs.) D=C*B 37.81 - Base Price (excluding Excise Duty or GST or GST) (in Rs.) E 310 310 Base Price for Central Sales Tax (GST) (in Rs.) F = E+D 347.81 - Central Sales Tax (GST) G 2% Central Sales Tax (in Rs.) H=G*F 6.96 GST I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent proceedings as per the provisions of Section 171 of the CGST Act:- I. Whether there was reduction in the rate of tax on the product in question w.e.f. 01.07.2017 or 14.11.2017? ll. Whether any benefit of reduction in the rate of tax was to be passed on? III. Whether the benefit of reduction in tax was passed on to the recipient by way of commensurate reduction in prices? 7. It is apparent from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017, as could be seen from the table given above. There is also no increase in the per unit base price (excluding tax) of the above product and therefore the allegation of profiteering is not established. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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